If you own a commercial trucking company, one expense you cannot afford to overlook is insurance. Yet, just because coverage is necessary does not mean it has to be expensive. As the company owner, you sit in the best position to drive your rates lower.

Assess Employee's Total Driving Record

Pay attention to employee driving records beyond their work with you. Commercial trucking insurance rates rest heavily on the driver's CDL record, but violations on their personal record can also be impactful. For example, a driver with a clean record on the job but multiple speeding violations off-the-clock will still raise the driver's risk level and, ultimately, the amount the company pays in insurance premiums. 

Understand Route Impact

You might be surprised to discover that the types of routes your company takes on can impact your costs. As a general rule, insurance rates are based on risks. For this reason, a trucking company that primarily has routes that travel through heavily populated areas or regions with terrain hazards, such as mountains, is generally deemed to be of higher risk. To keep your insurance rates manageable, it may be a good idea to be mindful of the routes you take on for the company.

Manage Newly Licensed Driver Ratio

It is always a good idea to onboard newly licensed drivers, but the ratio of your new truck drivers is something to manage. Again, insurance companies pay a lot of attention to risks when assessing rates. As a result, a company with a large number of new drivers may have increased premium rates compared to a company with a mix of new and experienced drivers. However, keep in mind that insurance rates typically drop as the driver becomes more experienced, so any rate increases should be temporary.

Remain Company DOT Compliant

In addition to the risk the drivers pose, the insurance companies care equally about the risks associated with the company. One way to keep your commercial trucking company's risk low is to remain Department of Transportation (DOT) compliant. Whether it is by ensuring that all your drivers adhere to the proper drive/rest schedule or passing safety or weigh inspections successfully, make sure the company DOT record stays compliant. Also, too many violations can impact a company's ability to remain insured.

Insurance coverage varies from provider to provider, so it is always good to obtain multiple quotes and speak with an insurance professional about any specific questions you have. 

Contact a local insurance agency like Russell Agency for more info.